Air Passenger Duty To Rise by 8 Per Cent From April 2012 Affecting the Caribbean holidays industry
The British chancellor, George Osborne, announced yesterday that APD would be increased by eight per cent in a double inflation rise. The rise will apply from April, 2012 and will significantly affect the price of flights for Caribbean holidays.
Despite receiving an open letter from aviation, tourism and trade unions, calling for a freeze on the APD increase, the British chancellor has decided to go ahead with the eight per cent double inflation rise on the tax.
The rise in APD will affect the price of flights coming in and going out of the UK and travellers planning Caribbean holidays will see a hike in the price of flights to the region as airlines are forced to add the hike to their fares.
The APD rise will come into effect from 1st April, 2012 and is disappointing news for tourism and aviation leaders who fought to scrap the duty completely.
"The government has repeatedly said it looks to travel and tourism as one of its key drivers of growth but instead of listening to concerns that APD is stunting this growth, not only in travel but in the wider economy too, it has chosen to significantly increase the tax burden,” stated Mark Tanzer, the Chief Executive of the Association of British Travel Agents.
Image by: *michael sweet*, on Flickr
APD was introduced in 1994 and is charged according to how far away the capital of a country is from the United Kingdom. Despite Florida and Hawaii being located further from the UK, the country’s capital New York is closer than many Caribbean capital cities, so passengers taking holidays to the Caribbean are charged more.
Last year, the British chancellor, George Osborne, announced a freeze in APD for 12 months but it seems that passengers travelling in and out of Britain are now paying for that freeze with the highest flight taxes in the world.
Osborne also confirmed in his Budget speech yesterday that the APD would rise again with the rate of inflation in April, 2013.
Image by: *michael sweet*, on Flickr
The worst hit travellers will be those planning long haul trips such as holidays in the Caribbean, the United States, the Middle East, South Africa, South America and Australia.
The cost of APD for a family of four flying to the United States or Egypt has risen from £240 to £260, and the same family taking flights to the Caribbean or South Africa, will now pay £324, compared to the previous £300.
In the open letter which was delivered to the British Chancellor prior to the Budget announcement, tourism, aviation and trade unions urged the government to scrap the duty, saying that by removing it, an additional 91,000 British jobs could be created and £4.2 billion would be added to the economy in just 12 months.
Image by: worldtraveller5, on Flickr
The news is also a blow for the Caribbean tourism industry which is only just beginning to recover from the global recession. The region’s economy heavily relies on travellers going on holidays in the Caribbean and the increased APD could see families heading to destinations that are closer to the UK or to the United States.
Talk to a specialist
Call 020 7644 1770 to speak with our award-winning travel consultants.
Opening hours 09:00 - 21:00 GMT
Popular Holidays In Caribbean and Costa Rica Browse all
Dive into the warm water of Varadero beach and relax under the caribbean sunshine
- Enjoy a fantastic tour
- Book now and benefit from huge savings with the launch of the new Virgin Atlantic to Varadero offer!
- Suites feature a separate living area and Tropical suites feature breathtaking views of the sea
- Golf lovers can play on the nearby Varadero 18 hole golf course
Stay at a Havana hotel brimming with history then head off to a brand-new beachfront resort in Varadero
Relish the timeless charms of Cuba from the comfort of Cuba’s most cutting edge hotels
- Stay at two of Cuba’s most cutting edge hotels, bursting with modern comforts
- Relish an all-inclusive beach retreat, boasting an overabundance of facilities
- Explore Havana’s charismatic, timeless and bustling streets
A couples' special - enjoy the perfect mix of history, local culture and laidback beach retreat for the perfect romantic Cuban experience.
- Enjoy all kind of the Spa treatments, water and land sports at Blau Varadero
- Fantastic views to the ocean from the modern and elegant rooms with balcony or terrace
- The perfect location of Blau Varadero beside the pristine sandy beach
Use up to $2000 resort credit to indulge in spa treatments, golf sessions or a selection of excursions that will make your Cancun holiday truly unforgettable.
- Duran Duran in concert at Moon Palace on 29th December (tickets additional cost)
- Winner of the Trip Advisor 2015 Travellers Choice Award
- Enjoy the impressive $2000 Resort Credit per booking that you can spend on golf, spa treatments, dolphin swims, visit to Chichen Itza, Express Tour of Tulum, Family fun days out at the Wet 'N' Wild Waterpark and much more
- Whether you are looking for an active holiday or a relaxing break, Moon Palace Resort is an ideal destination for travellers of all ages
Soak up the history of Havana as well as the magnificence of Varadero beach on an unforgettable twin centre holiday to...
One of Havana’s most historically popular mafia-run hotels of the 50s, the Capri is a legendary property with over...
If you want to really feel Cuba's beating heart and pulsating rhythms, this is one of the best for an unforgettable...
This 1920s colonial house is surrounded by lush vegetation and terrace areas and boasts a stunning array of antiques,...
Look out onto the day to day life of Havana's streets from the Casa Santy's balconies, with its great location and a...